Another week, another Bitcoin mining deal was announced.
This week CleanSpark (Nasdaq: CLSK) announced the acquisition of GRIID Infrastructure (Nasdaq: GRDI) in a transaction with an enterprise value of $155M. The stock was up over 150% on the week prior to the announcement on Thursday morning, but ended the week down 12%.
GRIID was originally supposed to go public via SPAC in 2021/2022 at a $3.3B enterprise valuation. However, it took over 2 years of SEC review for GRIID to be listed on the Nasdaq, and the stock has now fallen over 80% since listing on January 29, 2024. GRIID is yet another tale of the hurdles of going public via a SPAC; many end up cancelled (Circle, eToro, Bullish) or perform poorly on the public markets (Bakkt, Bitcoin Depot).
Public company acquisitions at a material discount to current and recent value are extremely rare. We are eager to hear the narrative that supports this transaction from a GRIID’s shareholders point-of-view.
We will be publishing the Architect Partners Q2 2024 Crypto M&A and Financing Report in the coming days. The headline is the crypto and digital asset sector is solidly back and building.